Gaia Impact, a prominent impact investment advisory firm that initiated a coalition in March last year alongside Capital Croissance, Schneider Electric, Capelan, and Investisseurs & Partenaires (I&P), has successfully reached its initial closing target of €40 million (42.2 Million USD) for the Gaia Energy Impact Fund II (GEIF II).

GEIF II, a fund adhering rigorously to the impact criteria outlined in Article 9 of the SFDR regulation, is dedicated to financing and nurturing startups and SMEs that operate throughout the entire decentralized renewable energy value chain, capitalizing on Gaia Impact’s profound expertise. In a previous investment endeavor, Gaia Impact Fund SAS (“Fund 1”) invested in approximately twelve companies, predominantly in Sub-Saharan Africa. Notably, Osmosun, a beneficiary of Fund 1, recently made a successful debut on Euronext Growth® by going public.

Aligned with the same investment philosophy, GEIF II is positioned to provide funding at the seed, Series A, and Series B stages, utilizing equity and quasi-equity instruments, with investment amounts ranging from €500,000 to €5 million. The fund’s overarching objective is to support roughly twenty companies, with an estimated 85% of them actively engaged in Sub-Saharan Africa.

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GEIF II will allocate investments within sectors encompassing decarbonized energy access, productive energy utilization, electric mobility, new energy solutions, and enabling technologies. These investments are anticipated to yield improved energy accessibility for approximately 4 million people, facilitate the creation and sustenance of 20,000 jobs, and mitigate the emission of 4 million tons of CO2.

Capital Croissance, entrusted exclusively with Gaia Impact’s advisory services, serves as the fund manager for Gaia Energy Impact Fund II, while Schneider Electric and the Capelan family office are the cornerstone investors of the fund. I&P, an established specialist in private equity investments within Africa spanning two decades, plays a pivotal role as a strategic partner owing to its localized presence and extensive experience on the continent.

Beyond providing financial backing, the Gaia Impact team assumes the role of a dedicated and patient collaborator alongside entrepreneurs, offering counsel on strategic decision-making and actively participating in business structuring. Schneider Electric and I&P are set to contribute their expertise in supporting investments within their respective domains.

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GEIF II aspires to achieve a final closing of €80 million by the first half of 2024. In the summer season, GEIF II embarked on its inaugural investment of $1 million in Surechill, a Kenyan-based enterprise that has pioneered transformative technology in medical and productive refrigeration.

Hélène Demaegt, the Founder and President of Gaia Impact, expressed her gratitude for this initial closing, stating, “We sincerely thank our partners for making the Gaia Impact adventure even more ambitious. Thanks to them, our action for the energy transition in Africa is taking on a new dimension.”

Eric Neuplanche, Founder and President of Capital Croissance, added his perspective, remarking, “We have been impressed by the achievements and high professionalism of the Gaia Impact team since 2017, and even more so by the strong social, societal, and environmental ambition of this impact fund. It replaces polluting energy with decarbonized energy and provides access to energy for 4 million people. The entire Capital Croissance team is proud and highly motivated to be associated with the Gaia Impact team, I&P, and Schneider Electric in a fund project that reconciles economic returns, social impact, and environmental impact.”

Jérémy Hajdenberg, co-CEO of I&P, emphasized their commitment, stating, “I&P is proud to engage with Gaia Impact on this fundamental project, addressing both energy and SME financing issues. Beyond its participation in Investment Committees and governance, I&P will provide its expertise on ESG and impact and its network in Sub-Saharan Africa, built over more than 20 years of impact investment in Sub-Saharan Africa.”

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Gilles Vermot Desroches, SVP Corporate Citizenship at Schneider Electric, affirmed their dedication, stating, “Schneider Electric has been active for more than 10 years in supporting access to electricity, especially through its impact investment activity. We believe that this new coalition brings together the best assets to accelerate our impact in Africa. Schneider Electric will make its team’s expertise available for this project.”

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard